Author: Editor

A few keystrokes are all it takes.

All of a sudden, your most private information is in the hands of criminals. Your most personal information, banking details, social security numbers, your children’s information.

Yet, we’re still not prepared as it gets worse.

Not only is the U.S. government poorly prepared for cyberattacks, major companies all over the country aren’t either.

Over the weekend, for example, top U.S. fuel pipeline operator, Colonial Pipeline shut down its entire network after a ransomware attack. What makes the situation far worse is that Colonial Pipeline supplies about half of the fuel supply for the East Coast.

In fact, according to Reuters, “Colonial transports 2.5 million barrels per day of gasoline, and other fuels through 5,500 miles (8,850 km) of pipelines linking refiners on the Gulf Coast to the eastern and southern United States.”

“This is as close as you can get to the jugular of infrastructure in the United States,” said Amy Myers Jaffe, research professor and managing director of the Climate Policy Lab, as also quoted by Reuters. “It’s not a major pipeline. It’s the pipeline.”

However, it wasn’t just the pipeline that was hit.

According to Bloomberg, “Attacks were revealed against the police department in Washington, D.C. , where the hackers threatened to release information about police informants to criminal gangs; the Illinois Attorney General’s office, which had been warned about weak cybersecurity practices in a recent state audit; and San Diego-based Scripps Health, where medical procedures were canceled and emergency patients diverted to other hospitals.”

For the U.S. to be so poorly prepared for cyberattacks is getting a bit ridiculous. Unless the government takes the issue far more seriously, the attacks could get even worse.

For investors, some of the top stocks to keep an eye on with cyberattacks are FireEye (FEYE), ETFMG Prime Cyber Security ETF (HACK), Palo Alto Networks (PANW), Crowdstrike Holdings Inc. (CRWD), and the Global X Cybersecurity ETF (BUG).

The post Major Cyberattack Shuts Down Crucial U.S. Pipeline appeared first on Morningology.

The last major “chicken war” was in August 2019.

Popeyes and Chick-fil-A got into a fight over whose chicken tasted better. Then Wendy’s jumped in, tweeting, “Y’all fighting here about which of these fools has the second best chicken sandwich?”

Chickens were running for their lives there was so much demand.

Unfortunately, there was so much demand, chicken prices exploded, sending stocks like Tyson Foods (TSN) to higher highs. Now, it could happen all over again.

For one, there’s now a chicken sandwich war among McDonald’s, Popeyes, and Wendy’s. KFC can’t even keep up with demand these days, telling some restaurant owners to remove chicken tenders from online menus because of tighter supply.

Two, grilling season is just around the corner, which could increase demand even more. With folks wanting to get outside to enjoy the weather between Memorial Day and Labor Day, chicken demand and prices could soar.

While it could be tough for consumers, chicken companies are raking in cash. Pilgrim’s Pride (PPC) for example just reported a profit of $100 million – a nearly 50% jump year over year. We could see impressive numbers from Tyson Foods and Sanderson Farms when they report quarterly results.

Since the start of the year, chicken breast prices have now more than doubled, according to The Wall Street Journal, as wings prices have hit record highs. In fact, “The overall supply is constrained. That affects every part of the bird,” Wingstop Chief Executive Charlie Morrison said, as quoted by the Journal.

“Buk, buk, ba-gawk.”

The post Here’s How to Trade the Chicken Sandwich War of 2021 appeared first on Morningology.

This doesn’t come as a big surprise.

We’ve been saying this for quite some time.

This morning, the International Energy Agency warned, “The supply of critical minerals crucial for technologies such as wind turbines and electric vehicles will have to be ramped up over the next decades if the planet’s climate targets are to be met.”

“At least 30 times as much lithium, nickel and other key minerals may be required by the electric car industry by 2040 to meet global climate targets,” they added.

That includes minerals such as nickel, cobalt, lithium, copper, and rare earth elements.

“Demand outlooks and supply vulnerabilities vary widely by mineral,” they added, “but the energy sector’s overall needs for critical minerals could increase by as much as six times by 2040, depending on how rapidly governments act to reduce emissions.”

Look at lithium for example.

At the moment, it’s seeing a severe supply crunch, as EV demand increases.

In fact, according to IEEE Spectrum, “Rystad Energy projected a ‘serious lithium supply deficit’ in 2027 as mining capacity lags behind the EV boom. The mismatch could effectively delay the production of around 3.3 million battery-powered passenger cars that year. Without new mining projects, delays could swell to the equivalent of 20 million cars in 2030. Battery-powered buses, trucks, ships, and grid storage systems will also feel the squeeze.”

Here’s the bottom line.

We have a severe supply crunch that’s not likely to let up soon. We have sky-high demand for electric vehicles, and other green products to meet climate targets. Unfortunately, we just don’t have enough supply right now, which is sending mineral prices higher along with related stocks and ETFs, like the Global X Lithium & Battery Technology ETF (LIT).

The post International Energy Agency Warns Minerals for EVs Must Increase 30-Fold appeared first on Morningology.

Forget about 5G. 6G is already on the horizon.

Sure, 5G is expected to disrupt just about everything around us. It’s expected to strengthen the Internet of Things (IoT), virtual reality (VR), augmented reality (AR), robotics, automated vehicles, healthcare imaging, diagnostics, and more. There’s even been talk about 6G, with China launching a satellite to test airwaves for the potential technology.

In fact, according to Daily Star, a new 6G microchip has been developed that may be able to transmit data more than 30 times faster than 5G. “They believe its connection is so fast, it can download a Netflix film in less than a blink of an eye at an incredible 1,000 gigabits per second.”

Even President Biden and Japanese Prime Minister Yoshihide Suga agreed to invest $4.5 billion into the development of 6G, according to the White House. On April 16, the White House said:

Together, the U.S. and Japan will “Strengthen competitiveness in the digital field by investing in research, development, testing, and deployment of secure networks and advanced ICT including 5G and next-generation mobile networks (“6G” or “Beyond 5G”). The United States has committed $2.5 billion to this effort, and Japan has committed $2 billion.”

Even Germany just announced $833 million in financing for 6G technology.

“We now have to invest massively in 6G research. Only in this way can we strengthen the technological sovereignty of Germany and Europe in the long term. We don’t want to be dependent on others in the future. For this we need a decade of new beginnings and massive investments in the technologies of tomorrow and the day after tomorrow,” noted Federal Research Minister Anja Karliczek, as quoted by RCR Wireless.

To potentially profit from the 5G and 6G boom (perhaps 7G), some of the top stocks to consider are Qualcomm (QCOM), Inseego Corp. (INSG), the Defiance 5G Next Gen Connectivity ETF (FIVG), AT&T (T), American Tower Corp. (AMT), and the First Trust Indxx NextG ETF (NXTG).

The post Forget About 5G—It’s Time to Invest in the 6G Boom appeared first on Morningology.

Investors may want to use any weakness in lumber trades as a buy opportunity.

That includes ETFs, such as the iShares Global Timber & Forestry ETF (WOOD), Invesco MSCI Global Timber ETF (CUT), and Weyerhauser (WY).

All as lumber prices continue to explode higher.

As we noted on April 19:

According to Fortune, “Lumberyards and homebuilders alike have delayed buying lumber from sawmills in hopes the price of the sky-high commodity would finally come back down to earth. It hasn’t budged, and now the buying rush is on ahead of spring and summer projects.”

Unfortunately, prices aren’t likely to come down any time soon, with May 2021 lumber futures now up to $1,500.05 per thousand foot board, reports The Wall Street Journal. Not only is that an all-time high, but it’s about four times the typical price this time of year, they added.

“Not only has it surprised me, it’s just surprised the whole industry, how quickly we came roaring back. Housing and construction, repair and remodel, that’s where so much money was pointed by American consumers that the sheer scale of demand was hard to fathom,” Stinson Dean, CEO of Deacon Lumber, as quoted by Vox.com.

Worse, according to the National Association of Home Builders (NAHB), skyrocketing lumber prices just added about $35,872 to the price of an average new home.

With demand only accelerating, lumber prices could see higher highs.

Some of the best ways to trade that potential is with ETFs, such as the iShares Global Timber & Forestry ETF (WOOD), Invesco MSCI Global Timber ETF (CUT), and Weyerhauser (WY).

There’s no telling when lumber prices will start to pull back.

The post Three Top Ways to Trade Skyrocketing Lumber Costs appeared first on Morningology.

The U.S. could see even more stimulus.

Weeks after pitching a $2 trillion infrastructure plan, President Biden is expected to lay out plans for a $1.8 trillion proposal.  This one, called the American Families Plan, will include spending on child care, education, and extensions on tax breaks.

To pay for it, the Administration could raise the top income tax rate to 39.6% from 37% for those making more than $1 million. Biden may also raise the top tax rate on capital gains and dividends to 39.6% from 20%. In addition, he may require estates to pay taxes on unrealized capital gains of more than $1 million, or $2.5 million per couple.  

He also wants to send $80 billion to the IRS to strengthen enforcement against top earners.

While it could struggle to get through Congress, here’s what in the plan, according to CNBC.

• $225 billion toward high-quality child care and ensuring families pay only a portion of their income toward child-care services, based on a sliding scale
• $225 billion to create a national comprehensive paid family and medical leave program
• $200 billion for free universal preschool for all 3- and 4-year-olds, offered through a national partnership with states
• $109 billion toward ensuring two years of free community college for all students
• $200 billion to make permanent the $1.9 trillion Covid stimulus plan’s provision lowering health insurance premiums for those who buy coverage on their own
• Extending through 2025, and making permanently fully refundable, the child tax credit expansion that was included in the Covid relief bill
• Making permanent the recent expansion of the child and dependent care tax credit

President Biden is expected to outline his plan tonight at 9 EST.  He’s also expected to address proposals to address the issue of climate change, which could fuel upside in green stocks.

“The president has been clear that our tax system is broken when a hedge fund manager making hundreds of millions of dollars is paying taxes at a lower rate than the janitor working in his office or the housekeeper at his mansion,” White House senior adviser Anita Dunn said, as quoted by Bloomberg. “And he’s going to take steps — steps which are supported by the American public — to address the fairness in the tax code.”

The post Here’s What’s in Biden’s $1.8 Trillion American Families Plan appeared first on Morningology.

Pay close attention to copper stocks.

With copper prices just beginning to pop on supply-demand issues, stocks like Freeport McMoRan (FCX), Southern Copper (SCCO), BHP Group (BHP), and Riot Tinto (RIO) could move aggressively higher. You may also want to keep an eye on the Global X Copper Miners ETF (COPX), which ran from a January 2020 low of $30 to $40.30 so far.

From here, if it can break above triple top resistance, we could see a near-term test of $45.

The supply-demand situation has grown so dire, one of the world’s biggest copper traders, Trafigura Group believes the metal could hit $15,000 a ton over the next decade.

Goldman Sachs – which called copper ‘the new oil’ – also says copper could rally to $15,000 by 2025, as the world transitions to cleaner energy. The firm also believes annual demand for copper could skyrocket 900% to 8.7 million tons by 2030.

After all, “Copper will be crucial in achieving decarbonization and replacing oil with renewable energy sources, and right now, the market is facing a supply crunch that could boost the price by more than 60% in four year,” reports Business Insider. Electric vehicles, for example, use four times as much copper as petroleum-based cars.

Problem is — the world hasn’t seen newer investments in copper mines, which means users are competing for scarce supply.

“2021 is shaping up to be a year of significant deficit in the copper market as tighter-than-expected supply struggles to keep up with a radically improved demand outlook, underpinned by unprecedented levels of ‘green’ stimulus,” reports Mining Review.

“We expect copper demand growth outside of China to be a key driving force this year. The global industrial recovery is picking up pace, with macro indicators across several key copper consuming nations showing strength. Recent manufacturing PMI readings in the US, Europe, Japan, South Korea and India have entered expansionary territory.”

From here, copper prices and stocks could trend even higher.

With promises of a greener future, and a pledge to reduce emissions, the world will need as much copper as it can possibly get. Right now, supply just cannot keep up with demand.

The post The Top 5 Ways to Trade Copper’s Severe Supply-Demand Issue appeared first on Morningology.

The U.S. is running into a massive problem.

The government wants millions of electric vehicles on the roads. President Biden just pledged to cut emissions by up to 52% by 2030.

“The Biden goal will require the electric grid to be totally rebuilt in 10 years. According to the Natural Resources Defense Council, the U.S. will also have to double its share of carbon-free power to 80% from 40% today—half of which is now provided by nuclear—to have any hope of achieving Mr. Biden’s pledge. All coal plants would have to shut down, and natural gas plants would be phased into obsolescence. Wind and solar energy would have to increase six to seven fold,” as reported by The Wall Street Journal.

But there’s a massive problem…

One that could put the brakes on all of those plans.

Right now, the U.S. depends heavily on China for rare earth metals that green technology depends on. Problem is – China controls about 80% of the world’s rare earth supply – and is already threatening to heighten its regulations with such metals.

As a result, the U.S. is spending millions to find rare earth supply outside of China.

In fact, extraction efforts are taking place in U.S. hot spots, like Wyoming, Texas, and California. Companies like MP Materials (MP) restarted its Mountain Pass mine, attempting to “restore the domestic rare earths supply chain from mine to magnet, and is hedging its bets on neodymium-praseodymium, with the hope of becoming the lowest-cost producer,” as noted by CNBC.

With China increasing its regulations, and our desperate need for rare earths, this could be one of the top investment opportunities of the year.

To potentially profit from the story, keep an eye on stocks like MP Materials (MP), Lynas Corp. (LYSCF), and ETFs such as the Van Eck Vectors Rare Earth / Strategic Metals ETF (REMX).

The post The Major Supply Issue Threatening Biden’s Green Future appeared first on Morningology.

The world is aggressively moving toward net-zero carbon emissions.

In fact, just this morning, the U.S. pledged to cut greenhouse gas emission by nearly half over the next 10 years. “That’s where we’re headed as a nation, and that’s what we can do if we take action to build an economy that’s not only more prosperous but healthier, fairer and cleaner for the entire planet,” said President Biden, as quoted by National Review.

Not only are solar companies, like First Solar (FSLR) and SunPower (SPWR) benefiting from the news, but so are electric vehicle companies, like Tesla (TSLA) and Nio (NIO). Even hydrogen – which Goldman Sachs says has $11 trillion market potential – could be explosive.

For one, governments and auto companies are working to put millions of EVs on the roads.

In fact, according to Yahoo Finance, “Biden administration recently laid out plans to spend nearly $200 billion over eight years to support the surging EV industry. The administration is rumored to be eyeing an expansion of the tax incentive to consumers, which could be a big tailwind to sales at Tesla and its rivals.”

Two, if we’re going to have millions of EVs on the roads, we’ll need charging stations. Biden, for example, wants 500,000 of them by 2030. Three, we’re already seeing massive developments with hydrogen fuel stations. Look at Nikola (NKLA) for example, which just announced a collaboration on hydrogen fuel stations with Travel Centers of America.

According to CNBC, “The plans include installing hydrogen fueling stations for heavy-duty trucks at two sites in California for TravelCenters of America, which is the largest publicly traded company that runs full-service travel centers in the U.S. The initial stations are ‘a first step for the parties to explore the mutual development of a nationwide network, according to Nikola.”

Four, global auto supplier Bosch just announced it would invest $1.2 billion in hydrogen fuel cell technology through 2024. The company believes the market could be worth $482. Billion by 2030 – with an annual growth rate of 65%.

No wonder green investors are excited.

The post Biden Pledges to Cut Emissions by 50% — Here’s Where to Invest appeared first on Morningology.